Former employees of Abbott Laboratories filed a complaint alleging the company unlawfully fired staff at its hospital-products division before spinning off the unit in order to avoid accrual of retirement benefits. Lawyers representing three former employees said that the May spinoff of Hospira prevented about 10,000 former Abbott employees who were later hired by Hospira from earning "substantial employee benefits," including retiree medical insurance. Abbott said its former employees were moved to Hospira as part of the spinoff and weren't terminated and that its actions complied with the Employee Retirement Income Security Act. The suit, filed in the U.S. District Court in Chicago, seeks class-action status. -- by the Associated Press
Hospira spinoff allegedly reduced workers benefits
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.